Bonterra Oil & Gas Ltd. Confirms New Rules Governing the Conversion of Trusts to Corporations

    CALGARY, April 9 /CNW/ - Bonterra Oil & Gas Ltd. (the "Corporation")
( (TSX: BNE) wishes to inform former unitholders
(Former Unitholders) of Bonterra Energy Income Trust (the "Fund") who held
units of the Fund (Fund Units) at the time of its conversion to the
Corporation on November 12, 2008, that they may be eligible to defer any
capital gain resulting from the exchange (the "Exchange") of their Fund Units
for shares of the Corporation without the need to complete and file any tax
election forms. Recently enacted amendments to the Income Tax Act (Canada)
(Tax Act) contain new rules governing the conversion of trusts to corporations
(Conversion Rules).
    The new Conversion Rules provide an automatic tax-deferred exchange of
Fund Units for shares in the Corporation if certain conditions are satisfied. 
With such conditions having been satisfied and providing that a Former
Unitholder has not made an election under section 85 of the Tax Act in respect
of the Exchange, a Former Unitholder will generally be considered to have
disposed of the Fund Units and to have acquired shares in the Corporation at
an amount equal to the cost amount of the Fund Units exchanged, such that no
capital gain or loss is realized on the Exchange. A Former Unitholder who
wishes to instead make an election under section 85 of the Tax Act in respect
of the Exchange may do so, as more particularly described in the Joint
Information Circular dated September 17, 2008.
    Former Unitholders should consult their own tax advisors for advice with
respect to the tax consequences to them of the Exchange with regard to their
particular circumstances.

    About Bonterra Oil & Gas Ltd.

    Bonterra Oil & Gas Ltd. is a conventional oil and gas corporation with
operations in Alberta, Saskatchewan and British Columbia. The shares are
listed on The Toronto Stock Exchange under the symbol "BNE".

    %SEDAR: 00003132E

For further information:

For further information: please visit or contact:
George F. Fink, CEO or Garth E. Schultz, Vice President, Finance and CFO or
Kirsten Kulyk, Manager, Investor Relations, Telephone: (403) 262-5307, Fax:
(403) 265-7488, Email:

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